American Beacon Bahl & Gaynor Small Cap Growth Fund GBSAX GBSCX GBSYX GBSIX GBSPX

Transcription

1 American Beacon PROSPECTUS April 29, 2016 Share Class A C Y Institutional Investor American Beacon Bahl & Gaynor Small Cap Growth Fund GBSAX GBSCX GBSYX GBSIX GBSPX American Beacon Bridgeway Large Cap Value Fund BWLAX BWLCX BWLYX BRLVX BWLIX American Beacon Holland Large Cap Growth Fund LHGAX LHGCX LHGYX LHGIX LHGFX American Beacon Stephens Mid-Cap Growth Fund SMFAX SMFCX SMFYX SFMIX STMGX American Beacon Stephens Small Cap Growth Fund SPWAX SPWCX SPWYX STSIX STSGX This Prospectus contains important information you should know about investing, including information about risks. Please read it before you invest and keep it for future reference. As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

2 Table of Contents Fund Summaries American Beacon Bahl and Gaynor Small Cap Growth Fund 1. American Beacon Bridgeway Large Cap Value Fund 5. American Beacon Holland Large Cap Growth Fund 9. American Beacon Stephens Mid-Cap Growth Fund 13. American Beacon Stephens Small Cap Growth Fund 17. Additional Information About the Funds Additional Information About Investment Policies and Strategies 21. Additional Information About Investments 22. Additional Information About Risks 22. Additional Information About Performance Benchmarks 25. Fund Management The Manager 26. The Sub-Advisors 27. Valuation of Shares 28. About Your Investment Choosing Your Share Class 29. Purchase and Redemption of Shares 31. General Policies 35. Frequent Trading and Market Timing 35. Distributions and Taxes 36. Additional Information Distribution and Service Plans 38. Portfolio Holdings 38. Delivery of Documents 38. Financial Highlights 38. Back Cover

3 American Beacon Bahl & Gaynor Small Cap Growth Fund SM Investment Objective The Fund s investment objective is long-term capital appreciation. Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales discounts if you and your eligible family members invest, or agree to invest in the future, at least $50,000 in all classes of the American Beacon Funds on an aggregated basis. More information about these and other discounts is available from your financial professional and in Choosing Your Share Class on page 29 of the Prospectus and Additional Purchase and Sale Information for A Class Shares on page 36 of the statement of additional information ( SAI ). Shareholder Fees (fees paid directly from your investment) Share Class A C Y Institutional Investor Maximum sales charge imposed on purchases (as a percentage of offering price) 5.75% None None None None Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds) 0.50% % None None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Share Class A C Y Institutional Investor Management Fees 0.56% 0.56% 0.56% 0.56% 0.56% Distribution (12b-1) Fees 0.25% 1.00% 0.00% 0.00% 0.00% Other Expenses 2.07% 2.28% 2.20% 2.48% 2.63% Acquired Fund Fees and Expenses 0.01% 0.01% 0.01% 0.01% 0.01% Total Annual Fund Operating Expenses % 3.85% 2.77% 3.05% 3.20% Fee Waiver and/or expense reimbursement 3 (1.50%) (1.71%) (1.68%) (2.06%) (1.83%) Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement 1.39% 2.14% 1.09% 0.99% 1.37% 1 A contingent deferred sales charge ( CDSC ) of 0.50% will be charged on certain purchases of $1,000,000 or more of A Class shares that are redeemed in whole or part within 18 months of purchase. 2 The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Fund s Financial Highlights table, which reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses. 3 The Manager has contractually agreed to waive fees and/or reimburse expenses of the Fund s A Class, C Class, Y Class, Institutional Class and Investor Class shares, as applicable, through April 30, 2017 to the extent that Total Annual Fund Operating Expenses exceed 1.38% for the A Class, 2.13% for the C Class, 1.08% for the Y Class, 0.98% for the Institutional Class and 1.36% for the Investor Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed only in the discretion and with the approval of a majority of the Fund s Board of Trustees. The Manager can be reimbursed by the Fund for any contractual fee waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager s own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the contractual percentage limit in effect at the time of the waiver/reimbursement or recoupment. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same, except that this example reflects the fee waiver/expense reimbursement arrangement for each share class through April 30, Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Share Class 1 Year 3 Years 5 Years 10 Years A $708 $1,284 $1,885 $3,502 C $317 $1,018 $1,838 $3,971 Y $111 $700 $1,315 $2,977 Institutional $101 $748 $1,420 $3,220 Investor $139 $815 $1,515 $3,377 Assuming no redemption of shares: Share Class 1 Year 3 Years 5 Years 10 Years C $217 $1,018 $1,838 $3,971 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund s performance. During the most recent fiscal year, the Fund s portfolio turnover rate was 54% of the average value of its portfolio. Prospectus Fund Summaries 1.

4 Principal Investment Strategies Under normal circumstances, at least 80% of the Fund s net assets (plus the amount of any borrowings for investment purposes) are invested in securities of small capitalization companies. The Fund considers a company to be a small capitalization company if it has a market capitalization, at the time of investment, within the range of the market capitalizations of the companies in the Russell 2000 Index. The capitalization range of that index is subject to change over time due to market activity or changes in the composition of the index. As of January 31, 2016, the market capitalizations of the companies in the Russell 2000 Index ranged from $2 million to $5.4 billion. The Fund s investment sub-advisor, Bahl & Gaynor Inc., d/b/a Bahl & Gaynor Investment Counsel ( Bahl & Gaynor ) pursues its small cap growth strategy by focusing on high-quality dividend-paying stocks. Quantitative tools are initially used for screening purposes, but Bahl & Gaynor s investment process is primarily driven by fundamental, bottom-up, company-focused processes. The investment process begins by quantitatively screening the stock universe to identify companies with perceived competitive advantages by evaluating their historical revenue growth, earnings growth, long-term debt/capital, dividend history and cash flows. The sub-advisor conducts extensive fundamental research on potential portfolio companies to determine which stock(s) provide the best risk/reward opportunities for inclusion in the portfolio. The sub-advisor typically will sell an investment if the company s fundamentals have changed or the company s market capitalization (stock market worth) moves outside of the small cap range. The Fund s equity investments may include common stocks, depositary receipts, and real estate investments trusts ( REITs ). The Fund may invest cash balances in other investment companies, including money market funds and may purchase and sell futures contracts to gain market exposure on cash balances and in anticipation of liquidity needs. The Fund may lend its securities to broker-dealers and other institutions to earn additional income. Principal Risks There is no assurance that the Fund will achieve its investment objective and you could lose part or all of your investment in the Fund. The Fund is not designed for investors who need an assured level of income and is intended to be a long-term investment. The Fund is not a complete investment program and may not be appropriate for all investors. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund. The principal risks of investing in the Fund are: Equity Investments Risk* Equity securities are subject to market risk. The Fund s investments in equity securities may include common stocks, depositary receipts, and REITs. Such investments may expose the Fund to additional risks. The value of a company s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Investments in depositary receipts are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt. REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Dividend Risk* An issuer of stock held by the Fund may choose not to declare a dividend or the dividend rate might not remain at current levels. Dividend paying stocks might not experience the same level of earnings growth or capital appreciation as non-dividend paying stocks. Foreign Investing Risk* Non U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards; (5) increased price volatility; (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies; and (7) delays in transaction settlement in some foreign markets. Futures Contract Risk* Futures contracts are derivative investments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. Futures contracts may experience dramatic price changes (losses) and imperfect correlation between the price of the contract and the underlying security or index which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). Growth Companies Risk* Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, the prices of these stocks may go down, even if earnings showed an absolute increase. Growth company stocks may lack the dividend yield that can cushion stock prices in market downturns. Investment Risk* An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in the Fund. Issuer Risk* The value of, and/or the return generated by, a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Market Risk* Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasigovernmental organizations. In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact of a rate increase on various. 2 Prospectus Fund Summaries

5 markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. Model and Data Risk* Models and data are used to screen potential investments for the Fund. When models or data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. Some of the models used by the sub-advisor are predictive in nature. The use of predictive models has inherent risks. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. Other Investment Companies Risk* The Fund may invest in shares of other registered investment companies, including money market funds. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by the underlying funds in addition to the Fund s direct fees and expenses and will be subject to the risks associated with investments in those funds. For example, money market funds are subject to interest rate risk, credit risk, and market risk. Sector Risk* Sector risk is the risk associated with the Fund holding a significant amount of investments in similar businesses, which could be affected by the same economic or market conditions. Securities Lending Risk* To the extent the Fund lends its securities, it may be subject to the following risks. Borrowers of the Fund s securities typically provide collateral in the form of cash that is reinvested in securities. The securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers. In addition, delays may occur in the recovery of securities from borrowers, which could interfere with the Fund s ability to vote proxies or to settle transactions. Securities Selection Risk* Securities selected by the sub-advisor or the Manager for the Fund may not perform to expectations. This could result in the Fund s underperformance compared to other funds with similar investment objectives. Small Capitalization Companies Risk* Investing in the securities of small capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization and more established companies. Since smaller companies may have limited operating history, product lines, and financial resources, the securities of these companies may lack sufficient market liquidity, and they can be particularly sensitive to expected changes in interest rates, borrowing costs and earnings. Fund Performance The bar chart and table below provide an indication of risk by showing how the Fund s performance has varied from year to year. The table shows how the Fund s performance compares to a broad-based market index, which is the Fund s benchmark index. You may obtain updated performance information on the Fund s website at Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Calendar year total returns for Investor Class Shares. 12/31 0% -1% -2% -3% -4% -3.25% Highest Quarterly Return: 4.12% 1st Quarter /1/2015 through 12/31/2015 Lowest Quarterly Return: -8.89% 3rd Quarter /1/2015 through 12/31/2015-5% 2015 Average annual total returns for periods ended December 31, 2015 Inception Date of Class Investor Class 7/15/ Year Since Inception Returns Before Taxes (3.25%) 2.45% Returns After Taxes on Distributions (3.74%) 2.06% Returns After Taxes on Distributions and Sales of Fund Shares (1.43%) 1.87% Share Class(Before Taxes) Inception Date of Class 1 Year Since Inception A 7/15/2014 (3.34%) 2.38% C 7/15/2014 (4.01%) 1.63% Y 7/15/2014 (3.05%) 2.72% Institutional 7/15/2014 (2.96%) 2.79% Prospectus Fund Summaries 3.

6 Index (Reflects no deduction for fees expenses or taxes) 1 Year Since Inception Russell 2000 Growth Index (1.38%) 4.07% After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor s tax situation and may differ from those shown. The return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period. If you hold your Fund shares through a tax-deferred arrangement, such as an individual retirement account or a 401(k) plan, the after-tax returns do not apply to your situation. After-tax returns are shown only for Investor Class shares; after-tax returns for other share classes will vary. Management The Manager* The Fund has retained American Beacon Advisors, Inc. to serve as its Manager. Sub-Advisor The Fund s investment sub-advisor is Bahl & Gaynor. Portfolio Managers Bahl & Gaynor Edward A. Woods Vice President, Principal & Portfolio Manager Since Fund Inception (2014) Scott D. Rodes Vice President, Principal & Portfolio Manager Since Fund Inception (2014) Stephanie S. Thomas Vice President, Principal & Portfolio Manager Since Fund Inception (2014) Purchase and Sale of Fund Shares You may buy or sell shares of the Fund through a direct mutual fund account, through a retirement account, through an investment professional or another financial intermediary. As a direct mutual fund account shareholder, you may buy or sell shares in various ways: Internet Phone To reach an American Beacon representative call , option 1 Through the Automated Voice Response Service call , option 2 (Investor Class only) Mail American Beacon Funds P.O. Box Kansas City, MO Overnight Delivery: American Beacon Funds c/o BFDS 330 West 9th Street Kansas City, MO You may purchase or redeem shares of the Fund on any day the New York Stock Exchange (NYSE) is open, at the Fund s NAV per share next calculated after your order is received in proper form, subject to any applicable sales charge. Share Class New Account Minimum Existing Account Purchase/Redemption Minimum by Check/ACH/Exchange C $1,000 $50 $250 A, Investor $2,500 $50 $250 Y $100,000 $50 None Institutional $250,000 $50 None Purchase/Redemption Minimum by Wire Tax Information Dividends and capital gain distributions, if any, that you receive from the Fund are subject to federal income tax and may also be subject to state and local income taxes, unless you are a tax-exempt entity or your account is tax-deferred (in which case you may be taxed later, upon the withdrawal of your investment from such account). Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and the Fund s distributor or the Manager may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the brokerdealer or other intermediary and your individual financial adviser to recommend the Fund over another investment. Ask your individual financial adviser or visit your financial intermediary s website for more information.. 4 Prospectus Fund Summaries

7 American Beacon Bridgeway Large Cap Value Fund SM Investment Objective The Fund seeks to provide long-term total return on capital, primarily through capital appreciation and some income. Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales discounts if you and your eligible family members invest, or agree to invest in the future, at least $50,000 in all classes of the American Beacon Funds on an aggregated basis. More information about these and other discounts is available from your financial professional and in Choosing Your Share Class on page 29 of the Prospectus and Additional Purchase and Sale Information for A Class Shares on page 36 of the statement of additional information ( SAI ). Shareholder Fees (fees paid directly from your investment) Share Class A C Y Institutional Investor Maximum sales charge imposed on purchases (as a percentage of offering price) 5.75% None None None None Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds) 0.50% % None None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Share Class A C Y Institutional Investor Management Fees 0.37% 0.37% 0.37% 0.37% 0.37% Distribution (12b-1) Fees 0.25% 1.00% 0.00% 0.00% 0.00% Other Expenses 0.50% 0.50% 0.44% 0.38% 0.72% Total Annual Fund Operating Expenses 1.12% 1.87% 0.81% 0.75% 1.09% Fee Waiver and/or expense reimbursement or recoupment % 0.00% 0.00% 0.04% 0.00% Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment 1.12% 1.87% 0.81% 0.79% 1.09% 1 A contingent deferred sales charge ( CDSC ) of 0.50% will be charged on certain purchases of $1,000,000 or more of A Class shares that are redeemed in whole or part within 18 months of purchase. 2 During the fiscal year ended December 31, 2015, the Fund paid amounts to the Manager that were previously waived and/or reimbursed by the Manager under a contractual fee waiver/expense reimbursement agreement for the Fund s Institutional Class. Under that agreement, the Manager can be reimbursed by the Fund for any contractual fee waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager s own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the contractual percentage limit in effect at the time of the waiver/reimbursement or recoupment. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Share Class 1 Year 3 Years 5 Years 10 Years A $683 $911 $1,157 $1,860 C $290 $588 $1,011 $2,192 Y $83 $259 $450 $1,003 Institutional $81 $244 $421 $933 Investor $111 $346 $601 $1,329 Assuming no redemption of shares: Share Class 1 Year 3 Years 5 Years 10 Years C $190 $588 $1,011 $2,192 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund s performance. During the most recent fiscal year, the Fund s portfolio turnover rate was 43% of the average value of its portfolio. Principal Investment Strategies The Fund invests in a diversified portfolio of stocks of large capitalization companies that are listed on the New York Stock Exchange, NYSE MKT, and NASDAQ. Under normal market conditions, at least 80% of Fund net assets (plus borrowings for investment purposes) are invested in stocks from among those in the large-cap category at the time of purchase. For purposes of the Fund s investment portfolio, large-cap stocks are those whose market capitalization (stock market worth) falls within the range of the Russell 1000 Index at the time of investment. The Russell 1000 Index measures the performance of the 1,000 largest U.S. companies based on total market capitalization. As of January 31, 2016, the market capitalizations of the companies in the Russell 1000 Index ranged from $58 million to $557 billion. Prospectus Fund Summaries 5.

8 The Fund s sub-advisor, Bridgeway Capital Management, Inc. ( Bridgeway Capital ), selects stocks within the large-cap value category for the Fund using a proprietary statistically driven approach. Value stocks are those Bridgeway Capital believes are priced cheaply relative to some financial measures of worth, such as the ratio of price to earnings, price to sales, or price to cash flow. Generally, these are stocks represented in the Russell 1000 Value Index, plus large capitalization stocks with similar value characteristics. The Russell 1000 Value Index includes those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. Based on statistically driven rules, securities are sold when the reasons for selecting the stock are no longer valid or when necessary to maintain the risk profile of the overall Fund. The Fund s investments may include common stocks, preferred stocks, securities convertible into U.S. common stocks, real estate investment trusts ( REITs ), American Depositary Receipts ( ADRs ) and U.S. dollar-denominated foreign stocks traded on U.S. exchanges (collectively referred to as stocks ). The Fund may also invest cash balances in other investment companies, including money market funds, and may purchase and sell futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs. While the Fund is actively managed for long-term total return, Bridgeway Capital seeks to minimize capital gains distributions as part of a tax management strategy. The successful application of this method is intended to result in a more tax-efficient fund than would otherwise be the case. The income objective of the Fund, which is a secondary objective, is achieved almost exclusively from dividend-paying stocks held by the Fund. However, not all stocks held by the Fund pay dividends. Principal Risks There is no assurance that the Fund will achieve its investment objective and you could lose part or all of your investment in the Fund. The Fund is not designed for investors who need an assured level of income and is intended to be a long-term investment. The Fund is not a complete investment program and may not be appropriate for all investors. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund. The principal risks of investing in the Fund are: Equity Investments Risk* Equity securities are subject to market risk. The Fund s investments in equity securities may include common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, REITs, depositary receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risks. The value of a company s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Preferred stocks and convertible securities are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities investment value. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt or foreign stock. Foreign Investing Risk* Non U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards; (5) increased price volatility; (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies; and (7) delays in transaction settlement in some foreign markets. Futures Contract Risk* Futures contracts are derivative investments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. Futures contracts may experience dramatic price changes (losses) and imperfect correlation between the price of the contract and the underlying security or index which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). Investment Risk* An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in the Fund. Issuer Risk* The value of, and/or the return generated by, a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Large Capitalization Companies Risk* The securities of large market capitalization companies may underperform other segments of the market because such companies may be less responsive to competitive challenges and opportunities and may be unable to attain high growth rates during periods of economic expansion. Market Risk* Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasigovernmental organizations. In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. High public debt in the U.S. and other countries creates ongoing systemic and market risks and policymaking uncertainty. Because the impact on the markets has been widespread, it may be difficult to identify both risks and opportunities using past models of the interplay of market forces, or to predict the duration of these market conditions. Interest rates have been unusually low in recent years in the U.S. and abroad. Because there is little precedent for this situation, it is difficult to predict the impact of a rate increase on various. 6 Prospectus Fund Summaries

9 markets. In addition, there is a risk that the prices of goods and services in the U.S. and many foreign economies may decline over time, known as deflation (the opposite of inflation). Deflation may have an adverse effect on stock prices and creditworthiness and may make defaults on debt more likely. Model and Data Risk* Models and data are used to screen potential investments for the Fund. When models or data prove to be incorrect or incomplete, any decisions made in reliance thereon expose the Fund to potential risks. Some of the models used by the sub-advisor are predictive in nature. The use of predictive models has inherent risks. Because predictive models are usually constructed based on historical data supplied by third parties, the success of relying on such models may depend heavily on the accuracy and reliability of the supplied historical data. Other Investment Companies Risk* The Fund may invest in shares of other registered investment companies, including money market funds. To the extent that the Fund invests in shares of other registered investment companies, the Fund will indirectly bear the fees and expenses charged by the underlying funds in addition to the Fund s direct fees and expenses and will be subject to the risks associated with investments in those funds. For example, money market funds are subject to interest rate risk, credit risk, and market risk. Sector Risk* Sector risk is the risk associated with the Fund holding a significant amount of investments in similar businesses, which could be affected by the same economic or market conditions. Securities Selection Risk* Securities selected by the sub-advisor or the Manager for the Fund may not perform to expectations. This could result in the Fund s underperformance compared to other funds with similar investment objectives. Value Stocks Risk* Value stocks are subject to the risk that their intrinsic value may never be realized by the market or that their prices may decline. While the Fund s investments in value stocks may limit its downside risk over time, the Fund may produce more modest gains than riskier stock funds as a trade-off for this potentially lower risk. Different investment styles tend to shift in and out of favor, depending on market conditions and investor sentiment. The Fund s value style could cause the Fund to underperform funds that use a growth or non-value approach to investing or have a broader investment style. Fund Performance The bar chart and table below provide an indication of risk by showing how the Fund s performance has varied from year to year. The table shows how the Fund s performance compares to a broad-based market index, which is the Fund s benchmark index. The performance of the Fund s Investor Class shares shown in the chart and table below represent the returns achieved by the Class N shares of the Fund s predecessor from January 1, 2006 to February 3, 2012, and the performance of the Investor Class shares from February 3, 2012 through December 31, The table below also shows the performance of the Fund s A Class, C Class, Y Class and Institutional Class shares. The Institutional Class shares of the Fund have adopted the performance history and financial statements of the Class N shares of the Fund s predecessor. Performance for the A Class, C Class, Y Class and Institutional Class shares represents the returns achieved by the Class N shares of the Fund s predecessor from January 1, 2006 to February 3, 2012, and the performance of each of the Fund s respective share classes from February 3, 2012 through December 31, In each case, the newer share classes would have had similar annual returns to the Class N shares because the shares of each class represent investments in the same portfolio securities. However, the older share class had different expenses than the newer share classes, which would affect performance. You may obtain updated performance information on the Fund s website at Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Calendar year total returns for Investor Class Shares. 12/31 60% 40% 20% 0% -20% -40% -60% 18.52% 4.49% % 24.92% 14.51% 2.33% 17.68% 37.28% 13.89% -1.51% Highest Quarterly Return: 17.15% 3rd Quarter /1/2006 through 12/31/2015 Lowest Quarterly Return: % 4th Quarter /1/2006 through 12/31/2015 Average annual total returns for periods ended December 31, Year 5 Years 10 Years Investor Class Returns Before Taxes (1.51%) 13.15% 7.57% Returns After Taxes on Distributions (2.28%) 12.65% 7.15% Returns After Taxes on Distributions and Sales of Fund Shares (0.22%) 10.54% 6.15% 1 Year 5 Years 10 Years Share Class(Before Taxes) A (1.56%) 13.03% 7.52% C (2.27%) 12.42% 7.23% Y (1.26%) 13.36% 7.67% Institutional (1.23%) 13.42% 7.70% Prospectus Fund Summaries 7.

10 Index (Reflects no deduction for fees expenses or taxes) 1 Year 5 Year 10 Year Russell 1000 Value Index (3.83%) 11.27% 6.16% After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local income taxes. Actual after-tax returns depend on an investor s tax situation and may differ from those shown. The return after taxes on distributions and sale of Fund shares may exceed the return before taxes due to an assumed tax benefit from any losses on a sale of Fund shares at the end of the measurement period. If you hold your Fund shares through a tax-deferred arrangement, such as an individual retirement account or a 401(k) plan, the after-tax returns do not apply to your situation. After-tax returns are shown only for Investor Class shares; after-tax returns for other share classes will vary. Management The Manager* The Fund has retained American Beacon Advisors, Inc. to serve as its Manager. Sub-Advisor The Fund s investment sub-advisor is Bridgeway Capital Management, Inc. Portfolio Managers Bridgeway Capital Management, Inc. * Predecessor Fund inception date. ** Includes Predecessor Fund. John Montgomery Chief Investment Officer, Portfolio Manager Since Fund Inception (2003) * Michael Whipple Portfolio Manager Since 2005 ** Elena Khoziaeva Portfolio Manager Since 2005 ** Purchase and Sale of Fund Shares You may buy or sell shares of the Fund through a direct mutual fund account, through a retirement account, through an investment professional or another financial intermediary. As a direct mutual fund account shareholder, you may buy or sell shares in various ways: Internet Phone To reach an American Beacon representative call , option 1 Through the Automated Voice Response Service call , option 2 (Investor Class only) Mail American Beacon Funds P.O. Box Kansas City, MO Overnight Delivery: American Beacon Funds c/o BFDS 330 West 9th Street Kansas City, MO You may purchase or redeem shares of the Fund on any day the New York Stock Exchange (NYSE) is open, at the Fund s NAV per share next calculated after your order is received in proper form, subject to any applicable sales charge. Share Class New Account Minimum Existing Account Purchase/Redemption Minimum by Check/ACH/Exchange C $1,000 $50 $250 A, Investor $2,500 $50 $250 Y $100,000 $50 None Institutional $250,000 $50 None Purchase/Redemption Minimum by Wire Tax Information Dividends and capital gain distributions, if any, that you receive from the Fund are subject to federal income tax and may also be subject to state and local income taxes, unless you are a tax-exempt entity or your account is tax-deferred (in which case you may be taxed later, upon the withdrawal of your investment from such account). Payments to Broker-Dealers and Other Financial Intermediaries If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and the Fund s distributor or the Manager may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the brokerdealer or other intermediary and your individual financial adviser to recommend the Fund over another investment. Ask your individual financial adviser or visit your financial intermediary s website for more information.. 8 Prospectus Fund Summaries

11 American Beacon Holland Large Cap Growth Fund SM Investment Objective The Fund primarily seeks long-term growth of capital. The receipt of dividend income is a secondary consideration. Fees and Expenses of the Fund This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales discounts if you and your eligible family members invest, or agree to invest in the future, at least $50,000 in all classes of the American Beacon Funds on an aggregated basis. More information about these and other discounts is available from your financial professional and in Choosing Your Share Class on page 29 of the Prospectus and Additional Purchase and Sale Information for A Class Shares on page 36 of the statement of additional information ( SAI ). Shareholder Fees (fees paid directly from your investment) Share Class A C Y Institutional Investor Maximum sales charge imposed on purchases (as a percentage of offering price) 5.75% None None None None Maximum deferred sales charge (as a percentage of the lower of original offering price or redemption proceeds) 0.50% % None None None Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Share Class A C Y Institutional Investor Management Fees 0.45% 0.45% 0.45% 0.45% 0.45% Distribution (12b-1) Fees 0.25% 1.00% 0.00% 0.00% 0.00% Other Expenses 0.59% 0.60% 0.63% 0.43% 0.79% Acquired Fund Fees and Expenses 0.01% 0.01% 0.01% 0.01% 0.01% Total Annual Fund Operating Expenses % 2.06% 1.09% 0.89% 1.25% Fee Waiver and/or expense reimbursement or recoupment % (0.01%) (0.09%) 0.01% 0.00% Total Annual Fund Operating Expenses after fee waiver and/or expense reimbursement or recoupment 1.30% 2.05% 1.00% 0.90% 1.25% 1 A contingent deferred sales charge ( CDSC ) of 0.50% will be charged on certain purchases of $1,000,000 or more of A Class shares that are redeemed in whole or part within 18 months of purchase. 2 The Total Annual Fund Operating Expenses do not correlate to the ratio of expenses to average net assets provided in the Fund s Financial Highlights table, which reflects the operating expenses of the Fund and does not include Acquired Fund Fees and Expenses. 3 The Manager has contractually agreed to waive fees and/or reimburse expenses of the Fund s C Class and Y Class, as applicable, through April 30, 2017 to the extent that Total Annual Fund Operating Expenses exceed 2.04% for the C Class and 0.99% for the Y Class (excluding taxes, interest, brokerage commissions, acquired fund fees and expenses, securities lending fees, expenses associated with securities sold short, litigation, and other extraordinary expenses). The contractual expense reimbursement can be changed only in the discretion and with the approval of a majority of the Fund s Board of Trustees. Under that agreement, the Manager can be reimbursed by the Fund for any contractual fee waivers or expense reimbursements if reimbursement to the Manager (a) occurs within three years after the Manager s own waiver or reimbursement and (b) does not cause the Total Annual Fund Operating Expenses of a class to exceed the contractual percentage limit in effect at the time of the waiver/reimbursement or recoupment. During the fiscal year ended December 31, 2015, the Fund paid amounts to the Manager that were previously waived and/or reimbursed by the Manager under a contractual fee waiver/expense reimbursement for the Fund s Institutional Class shares. Example This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund s operating expenses remain the same, except that the example reflects the fee waiver/expense reimbursement arrangement for the C Class and Y Class through April 30, Although your actual costs may be higher or lower, based on these assumptions, your costs would be: Share Class 1 Year 3 Years 5 Years 10 Years A $700 $963 $1,246 $2,052 C $308 $645 $1,108 $2,390 Y $102 $338 $593 $1,321 Institutional $91 $284 $493 $1,096 Investor $127 $397 $686 $1,511 Assuming no redemption of shares: Share Class 1 Year 3 Years 5 Years 10 Years C $208 $645 $1,108 $2,390 Portfolio Turnover The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the Fund s performance. During the most recent fiscal year, the Fund s portfolio turnover rate was 24% of the average value of its portfolio. Prospectus Fund Summaries 9.

12 Principal Investment Strategies The Fund seeks to achieve its investment objective by investing primarily in equity securities of large-capitalization growth companies. Under normal market conditions, the Fund will invest at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in equity securities of large market capitalization companies at the time of purchase. The Fund considers large market capitalization companies to be companies that have market capitalizations (stock market worth) within the market capitalizations of the companies in the Russell 1000 Index at the time of investment. The Russell 1000 Index measures the performance of approximately 1,000 of the largest U.S. companies based on total market capitalization. As of January 31, 2016, the market capitalizations of the companies in the Russell 1000 Index ranged from $58 million to $557 billion. In pursuing its investment objective, the Fund maintains a diversified portfolio of equity securities of companies that the Fund s sub-advisor, Holland Capital Management LLC, regards as high quality companies based on earnings growth faster than the general market, reasonable valuations, strong financial condition, strong management and superior industry positions. Equity securities include common stocks, preferred stocks, securities convertible into common stock, real estate investment trusts ( REITs ), American Depositary Receipts ( ADRs ) and U.S. dollar denominated foreign stock traded on U.S. exchanges. The Fund invests primarily in U.S. companies. The Fund may invest up to 20% of its total assets in securities of foreign issuers that exhibit the growth characteristics mentioned above. The Fund may also invest cash balances in other investment companies, including money market funds, and may purchase and sell futures contracts to gain market exposure on cash balances or reduce market exposure in anticipation of liquidity needs. Principal Risks There is no assurance that the Fund will achieve its investment objective and you could lose part or all of your investment in the Fund. The Fund is not designed for investors who need an assured level of income and is intended to be a long-term investment. The Fund is not a complete investment program and may not be appropriate for all investors. Investors should carefully consider their own investment goals and risk tolerance before investing in the Fund. The principal risks of investing in the Fund are: Equity Investments Risk* Equity securities are subject to market risk. The Fund s investments in equity securities may include common stocks, preferred stocks, securities convertible into or exchangeable for common stocks, REITs, depositary receipts, and U.S. dollar-denominated foreign stocks traded on U.S. exchanges. Such investments may expose the Fund to additional risks. The value of a company s common stock may fall as a result of factors affecting the company, companies in the same industry or sector, or the financial markets overall. Common stock generally is subordinate to preferred stock upon the liquidation or bankruptcy of the issuing company. Preferred stocks and convertible securities are sensitive to movements in interest rates. Preferred stocks may be less liquid than common stocks and, unlike common stocks, participation in the growth of an issuer may be limited. Distributions on preferred stocks generally are payable at the discretion of an issuer and after required payments to bond holders. Convertible securities are subject to the risk that the credit standing of the issuer may have an effect on the convertible securities investment value. Investments in REITs are subject to the risks associated with investing in the real estate industry such as adverse developments affecting the real estate industry and real property values. Depositary receipts and U.S. dollar-denominated foreign stocks traded on U.S. exchanges are subject to certain of the risks associated with investing directly in foreign securities, including, but not limited to, currency fluctuations and political and financial instability in the home country of a particular depositary receipt or foreign stock. Foreign Investing Risk* Non U.S. investments carry potential risks not associated with U.S. investments. Such risks include, but are not limited to: (1) currency exchange rate fluctuations, (2) political and financial instability, (3) less liquidity and greater volatility, (4) lack of uniform accounting, auditing and financial reporting standards; (5) increased price volatility; (6) less government regulation and supervision of foreign stock exchanges, brokers and listed companies; and (7) delays in transaction settlement in some foreign markets. Futures Contract Risk* Futures contracts are derivative investments pursuant to a contract with a counterparty to pay a fixed price for an agreed amount of securities or other underlying assets at an agreed date. The use of such derivative instruments may expose the Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. Futures contracts may experience dramatic price changes (losses) and imperfect correlation between the price of the contract and the underlying security or index which will increase the volatility of the Fund and may involve a small investment of cash (the amount of initial and variation margin) relative to the magnitude of the risk assumed (the potential increase or decrease in the price of the futures contract). Growth Companies Risk* Growth companies are expected to increase their earnings at a certain rate. When these expectations are not met, the prices of these stocks may go down, even if earnings showed an absolute increase. Growth company stocks may lack the dividend yield that can cushion stock prices in market downturns. Investment Risk* An investment in the Fund is not a deposit with a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the Fund, they could be worth less than what you paid for them. Therefore, you may lose money by investing in the Fund. Issuer Risk* The value of, and/or the return generated by, a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuer s goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets. Large Capitalization Companies Risk* The securities of large market capitalization companies may underperform other segments of the market because such companies may be less responsive to competitive challenges and opportunities and may be unable to attain high growth rates during periods of economic expansion. Market Risk* Since the financial crisis that started in 2008, the U.S. and many foreign economies continue to experience its after-effects, which have resulted, and may continue to result, in an unusually high degree of volatility in the financial markets, both domestic and foreign. In addition, global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. The severity or duration of adverse economic conditions may also be affected by policy changes made by governments or quasigovernmental organizations. In addition, political events within the U.S. and abroad may affect investor and consumer confidence and may adversely impact 10. Prospectus Fund Summaries